Estimate Your Rental Property Cash Flow

Use the Rental Property Cash Flow Calculator to estimate potential monthly cash flow from an investment property by comparing expected rental income with estimated property expenses.

Enter your expected rent and property costs to see how the numbers may affect potential monthly cash flow.

What Is Rental Property Cash Flow?

Rental property cash flow is the amount left after subtracting the property’s operating and financing expenses from its rental income.

A simple cash flow calculation can be represented as:

Rental Income − Property Expenses = Estimated Cash Flow

Expenses may include mortgage payments, property taxes, homeowners insurance, maintenance, property management, HOA fees, utilities, vacancy costs, and other recurring expenses.

How to Calculate Rental Property Cash Flow

To estimate rental property cash flow, start with the expected monthly rental income. Then account for the property’s estimated monthly expenses.

Common expenses include:

• Mortgage principal and interest
• Property taxes
• Property insurance
• Maintenance and repairs
• Property management
• HOA fees
• Utilities paid by the owner
• Vacancy and turnover costs
• Other operating expenses

The more complete your expense assumptions are, the more useful the estimate can be for comparing potential properties.

Why Calculate Rental Property Cash Flow?

A cash flow estimate can help you evaluate a potential rental property before purchasing it.

You can use different rent, purchase price, mortgage rate, expense, and vacancy assumptions to understand how changes could affect the property’s estimated monthly cash flow.

Cash Flow Is Not the Same as Profit

Positive monthly cash flow does not necessarily mean a property will produce a specific investment return. Cash flow is only one part of evaluating a rental property.

Investors may also consider the purchase price, down payment, financing costs, appreciation, equity, taxes, closing costs, capital expenditures, and potential return on investment.

What Is a Good Rental Property Cash Flow?

There is no single cash flow amount that makes a rental property financially successful. A useful benchmark depends on the property’s purchase price, financing, location, expenses, expected rent, investment goals, and other assumptions.

Instead of relying on one universal number, compare properties using consistent assumptions.